China has signed a free trade agreement with ASEAN countries. Some ASEAN customers of LUXMAN solar street light are worried about their import tariffs. In fact, if the manufacturer can provide solar street light with FORM E Certification,
Then ASEAN importers do not need to pay importing tax when importing solar street lamp products from China.
FORM E CERTIFICATE in Chinese is called CERTIFICATE OF PREFERENTIAL ORIGIN OF China-ASEAN FREE TRADE AREA, or CERTIFICATE OF ASEAN for short, and its English name is 《ASEAN-CHINA FREE TRADE AREA PREFERENTIAL TARIFF CERTIFICATE OF ORIGIN FORM E》. The issuance of FORM E certificates is limited to products entitled to tariff preferences under the published 《Agreement on trade-in goods》, which must comply with 《The rules of origin of the china-ASEAN free trade area》. The contents of the certificate shall be completed in English.
Agreement countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam.
FORM A shall be used when applying for the FORM E certificate in writing. The items of the application form should be filled in truthfully, and the same fields as the certificate should be consistent with the content of the certificate.
In international trade, countries in the world generally implement import trade control according to their respective foreign trade policies and impose differential tariffs and quantitative restrictions on imported goods, and the customs carry out statistics. The FORM E certificate is the certificate of goods issued by the importing and exporting countries, and it is also an important certificate for international trade.
To sum up, it has the following functions:
(1) an important tool for determining tariff treatment of products and improving market competitiveness;
(2) to prove the internal quality of the product or the basis for foreign exchange settlement;
(3) the basis for trade statistics;
(4) the importing country implements the differential quantity control, carries on the trade management tool.
Since January 1, 2004, all agricultural products exported to ASEAN (HS chapters 1-8) can enjoy preferential tariff treatment by virtue of the preferential certificate of origin of a China-ASEAN free trade area (FORM E) issued by the inspection and quarantine body. From July 20, 2005, more than 7,000 kinds of normal products began to reduce the overall tax. China and the six old ASEAN members (namely Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand) reduced their tariffs on 40% of the tariff items to 0-5% by July 2005; In January 2007 the tariff on 60% of the items will be reduced to 0-5%. Tariffs were eventually cut to zero on January 1, 2010. For Laos, Myanmar, and Cambodia, 50 percent of the tariff items were reduced to 0-5 percent by January 2009 and January 2012. In 2013, the 40 percent tariff was reduced to zero. Vietnam’s 50% tariff fell to 0-5% in 2010. Four other countries (Laos, Myanmar, Cambodia, and Vietnam) cut tariffs to zero in 2015.
Sample of Original solar street light with FORM E from LUXMAN: